equilibrium

(noun)

In economics, the point at which supply equals demand and prices cease fluctuating.

Related Terms

  • supply and demand
  • free market

Examples of equilibrium in the following topics:

  • Market-Oriented Theories

    • When the supply of a product exactly meets the demand for it, the price reaches a state of equilibrium and no longer fluctuates.
    • Considering inequality, market-oriented theories claim that if left to the free-market, all products and services will reach equilibrium, and price stability will reduce inequality.
    • Generally, market-oriented theories hold that when supply of labor and goods meets demand, the economic order will reach equilibrium, and inequality will either be non-existent or will be stable.
  • Conflict Theory

    • Conflict theory argues that society is not best understood as a complex system striving for equilibrium but rather as a competition.
    • The structural-functionalist approach argued that society tends toward equilibrium, focusing on stability at the expense of social change.
    • Structural-functionalism focuses on equilibrium and solidarity; conflict-theory focuses on change and conflict.
  • The Functionalist Perspective

    • From this perspective, societies are seen as coherent, bounded, and fundamentally relational constructs that function like organisms, with their various parts (such as race) working together in an unconscious, quasi-automatic fashion toward achieving an overall social equilibrium.
    • Given this emphasis on equilibrium and harmony, the functionalist perspective easily allows for specific macro-analyses of more contentious power imbalances, such as race-related issues.
  • Gemeinschaft and Gesellschaft

    • The equilibrium in Gemeinschaft is achieved through morals, conformism, and exclusion (social control), while Gesellschaft keeps its equilibrium through police, laws, tribunals and prisons.
  • The Functionalist Perspective

    • ., the educational system), thus bringing social life back into equilibrium.
    • The various parts of society are assumed to work together naturally and automatically to maintain overall social equilibrium.
    • Critics also argue that functionalism is unable to explain social change because it focuses so intently on social order and equilibrium in society.
  • Structural-Functionalism

    • The various parts of society are assumed to work in an unconscious, quasi-automatic fashion towards the maintenance of the overall social equilibrium.
    • Structural-functionalism has been criticized for being unable to account for social change because it focuses so intently on social order and equilibrium in society.
    • Thus, as one aspect of society changed - the economy and production - it required a comparable change in the educational system, bringing social life back into equilibrium.
  • Activity Theory

    • Activity theory reflects the functionalist perspective that the equilibrium, that an individual develops in middle age, should be maintained in later years.
  • Summary

    • But, real world social networks are often quite messy, may not be fully realized (that is, not in equilibrium), and/or may be badly measured.
  • Aging in the US

    • In short, as populations in specific locations age, the entire social structure must change to accommodate the new demographic, which supports the notion of equilibrium in structural-functionalist theory.
  • School

    • Structural functionalists believe that society leans towards social equilibrium and social order.
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